KYOCERA Announces Consolidated Financial Results for Third Quarter, Ended Dec. 31, 2018
KYOTO, Japan–(BUSINESS WIRE)–Kyocera Corporation (TOKYO:6971) today announced its consolidated third-quarter financial results for the fiscal year ending March 31, 2019. Results are summarized below, both as an aggregation of Kyocera’s first three fiscal quarters (the “period,” i.e., nine months), and as the third quarter alone (the “quarter,” i.e., three months) ended Dec. 31, 2018. From the start of this fiscal year, Kyocera Corporation and its consolidated subsidiaries have adopted International Financial Reporting Standards (“IFRS”) in lieu of U.S. Generally Accepted Accounting Principles. Financial figures for the prior fiscal year have been reclassified below in accordance with IFRS for comparative analysis. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html
Consolidated Financial Highlights: Nine Months Ended December 31, 2018
| Unit: Millions (except percentages and per-share amounts) | ||||||||||||||||
| Nine Months Ended December 31, | ||||||||||||||||
| 2017 (FY18) in JPY |
2018 (FY19) in JPY |
Change | 2018 (FY19) in USD |
2018 (FY19) in EUR |
||||||||||||
| Amount in JPY |
% | |||||||||||||||
| Sales revenue: | 1,145,016 | 1,214,417 | 69,401 | 6.1 | 10,941 | 9,562 | ||||||||||
| Operating profit: | 108,322 | 60,576 | (47,746 | ) | (44.1 | ) | 546 | 477 | ||||||||
| Profit before income taxes: | 147,262 | 104,100 | (43,162 | ) | (29.3 | ) | 938 | 820 | ||||||||
| Profit attributable to owners of the parent: |
93,088 | 79,419 | (13,669 | ) | (14.7 | ) | 715 | 625 | ||||||||
| Earnings per share attributable to owners of the parent (basic): |
253.16 | 219.17 | － | － | 1.97 | 1.73 | ||||||||||
| Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above as a convenience to the reader, based on the rates of USD1 = JPY111 and EUR1 = JPY127, rounded to the nearest unit (as of December 28, 2018) |
Summary
During this period, robust demand for electronic devices, fine ceramic parts, automotive camera modules, and multifunctional document solutions products fueled a significant increase in the company’s sales revenue. Additionally, mergers and acquisitions brought new revenue streams. As a result, the company attained nine-month sales revenue of JPY1,214,417 (USD10,941) million, an increase of JPY69,401 (USD625) million, or 6.1%, over the prior-year period — setting a period record for the second consecutive year.
Profit decreased as compared to the prior-year period, due to the recording of settlement expenses in the amount of JPY52,313 (USD471) million relating to long-term purchase agreements for procurement of polysilicon material in the solar energy business and to the recording of impairment loss relating to machinery, equipment and goodwill in the organic materials business in the amount of JPY16,184 (USD146) million, which more than offset the effects of increased sales revenue and cost reductions efforts in each division. Due mainly to these extraordinary expenses, operating profit decreased by 44.1%, to JPY60,576 (USD546) million; profit before income taxes decreased by 29.3%, to JPY104,100 (USD938) million; and profit attributable to owners of the parent decreased by 14.7%, to JPY79,419 (USD715) million.
Average exchange rates for the period reflect the Japanese yen’s appreciation of approximately 0.9% against the U.S. dollar, to JPY111, while the yen-to-euro exchange rate remained unchanged from the prior-year period’s average of JPY129. As a result, sales revenue was reduced by approximately JPY3 billion (USD27 million) as compared to the prior-year period.
Consolidated Financial Highlights: Third Quarter
| Unit: Millions (except percentages) | |||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||
| 2017 (FY18-Q3) in JPY |
2018 (FY19-Q3) in JPY |
Change | 2018 (FY19-Q3) in USD |
2018 (FY19-Q3) in EUR |
|||||||||||||
| Amount in JPY |
% | ||||||||||||||||
| Sales revenue: | 406,671 | 413,779 | 7,108 | 1.7 | 3,728 | 3,258 | |||||||||||
| Operating profit: | 39,050 | (22,025 | ) | (61,075 | ) | (198 | ) | (173 | ) | ||||||||
| Profit before income taxes: | 56,474 | (1,589 | ) | (58,063 | ) | (14 | ) | (13 | ) | ||||||||
| Profit attributable to owners of the parent: |
29,647 | 1,025 | (28,622 | ) | (96.5 | ) | 9 | 8 | |||||||||
| (See note above regarding exchange rates.) | |||||||||||||||||
Guidance for the Fiscal Year Ending March 31, 2019
Kyocera has revised the consolidated full-year financial forecasts it announced on November 28, 2018, anticipating slower fourth-quarter demand for components amid production adjustments in the smartphone market and lower capital equipment investments among makers of industrial machinery. In the equipment and systems business, revenue is expected to fall short of the November 28, 2018 forecast in the Document Solutions Group and in the solar energy segment of the Life & Environment Group. In addition, profit results will fall short of the forecast, as impairment loss in the organic materials business recorded in the third quarter will exceed total savings attained through company-wide expense reduction efforts over the full year.
Regarding average exchange rates for the full fiscal year, Kyocera’s November 28, 2018 forecast of JPY105 against the U.S. dollar has been revised to JPY110, marking depreciation of JPY5 (4.8%); the forecast of JPY130 against the euro has been revised to JPY128, marking appreciation of JPY2 (1.5%).
Consolidated Forecast: Year Ending March 31, 2019
| Unit: Yen in millions (except percentages, per-share amounts and exchange rates) | ||||||||||||
| Fiscal 2018 Results |
Fiscal 2019 Forecast Announced on November 28, 2018 |
Fiscal 2019 Forecast Announced on February 1, 2019 |
Change (%) from Fiscal 2018 Results |
|||||||||
| Sales revenue: | 1,577,039 | 1,650,000 | 1,600,000 | 1.5 | ||||||||
| Operating profit: | 90,699 | 99,000 | 76,000 | (16.2 | ) | |||||||
| Profit before income taxes: | 129,992 | 135,000 | 120,000 | (7.7 | ) | |||||||
| Profit attributable to owners of the parent: |
79,137 | 95,500 | 90,000 | 13.7 | ||||||||
| Earnings per share attributable to owners of the parent (basic): |
215.22 | 263.32 | * | 248.36 | ** | – | ||||||
| Average USD exchange rate: | 111 | 105 | 110 | – | ||||||||
| Average EUR exchange rate: | 130 | 130 | 128 | – | ||||||||
| *Based on the average number of shares outstanding during the six months ended September 30, 2018 | ||||||||||||
| **Based on the average number of shares outstanding during the nine months ended December 31, 2018 | ||||||||||||
Forward‐Looking Statements
Please refer to https://global.kyocera.com/ir/disclaimer.html
About KYOCERA
Kyocera Corporation (TOKYO:6971) (https://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of industrial and automotive components, semiconductor packages, electronic devices, solar power generating systems, printers, copiers, and mobile phones. During the year ended March 31, 2018, the company’s sales revenue totaled 1.58 trillion yen (approx. USD14.9 billion). Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #612 on Forbes magazine’s 2018 “Global 2000” list of the world’s largest publicly traded companies.
Contacts
KYOCERA Corporation (Japan)
Corporate Communications
Kenichi Hara
Tel: +81-(0)75-604-3416
Fax:+81-(0)75-604-3516
E-Mail: webmaster.pressgl@kyocera.jp
Website: https://global.kyocera.com/